ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Articles By Prasenjit Barik

Is Fixed Price Contract a Viable Option for Farmers?

This paper explores the economics of contract versus non-contract potato farming in West Bengal, India, using primary data collected from a household survey of 263 farmers (2021–22 potato season). While proponents of contract farming argue that fixed prices and secure markets provide farmers with better returns, this study shows that non-contract farmers actually obtained much higher farm investment income (`42,413.63) per acre than contract farmers (`9,703.94). Without any significant differences in yield and production costs, the higher open market price (`1,458) per quintal benefits non-contract potato farmers despite production loss, while the fixed price in contract farming (`1,106) leads to significantly less farm returns for contract potato farmers.